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Banks to invest in stocks from tomorrow

Staff Correspondent | Published: 01:00, Mar 17,2020

 
 

Banks are going to make investment in stock market from Wednesday from their special fund planned for reviving the ailing market.

The decision was taken at a meeting between finance minister AHM Mustafa Kamal and bankers at planning commission in Dhaka on Monday.

AHM Mustafa Kamal told reporters after the meeting that a policy had already been formulated to allow each bank to form a Tk 200 crore special fund for the stock market investment.

But the necessity of immediate investment by the banks became imperative to avert the recent continuous fall in share prices amid fear of coronavirus, he said.

Dhaka stocks crashed for the third day on Monday, with the key index hitting a six-and-a-half-year low, due to concerns over the country’s economy.

Dhaka Stock Exchange’s key index DSEX plunged by 4.95 per cent, or 196.75 points, to close at 3,772.55 points on the day as the DSEX lost 458.91 points in the last three sessions.

On Monday, the DSEX hit its lowest since October 21, 2013 when the index was at 3,763.88 points while the blue chip index, DS30, and Shariah index, DSES, also hit all-time lows.

The DSE lost Tk 58,270 crore in market capitalisation in the last 20 days’ rout.

Representatives of Bangladesh Association of Banks and Association of Bankers, Bangladesh Limited attended the meeting.

BAB chairman Nazrul Islam Mazumder said the investment would be made gradually by 54 banks.

ABB chairman Ali Reza Iftekhar said they would borrow money at 5 per cent interest from the central bank from Wednesday for share market investment.

There will be a review meeting on March 24 to know the implementation status of the day’s decision.

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